Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q1 2024 Earnings Presentation
21 slides from Mosaic Company (the)'s earnings presentation, May 2, 2024
Slide 1: The Mosaic Company First Quarter 2024 Results
The Mosaic Company First Quarter 2024 Results May 1, 2024 Date:
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending transactions or strateg
Slide 3: First Quarter 2024 Performance
First Quarter 2024 Performance CONSOLIDATED OPERATING NET ADJUSTED (1) REVENUES EARNINGS EARNINGS EBITDA $2,679M $173M $45M $576M PHOSPHATE POTASH MOSAIC FERTILIZANTES Net Operating Adjusted(1) Net Operating Adjusted(1) Net Operating Adjusted(1) Revenues Earnings EBITDA Revenues Earnings EBITDA Reve
Slide 4: First Quarter Highlights
First Quarter Highlights ➢ Solid phosphate and potash results underscore strong North American spring planting demand. Prices moderated since then, but demand is emerging in other parts of the world Performance ➢ Fertilizer market fundamentals remain constructive, with phosphate supply and demand pa
Slide 5: Ma'aden Transaction
Ma’aden Transaction Transaction Details Ma’aden Overview Value of Transaction: ~$1.5 billion in Ma’aden shares Market cap: ~$50.9 billion* Mosaic’s Initial Investment: $770 million Exchange: Saudi Stock Exchange Other Terms: Ticker: SASE 1211 ➢ Transaction is subject to approval of Ma’aden’s 2023 Re
Slide 6: Investing in Our Strengths
Investing in Our Strengths Optimized Assets and Operations A strong Value-Added Product Portfolio Ramping up phosphate production to a 2 million per quarter run-rate in 4Q Completed MicroEssentials capacity conversion at Riverview ➢ Fixed costs absorption benefits - conversion cost down by $20-$30 p
Slide 7: Costs and Capex Reduction
Costs and Capex Reduction $150 million run rate costs reduction to be achieved by end of 2025 ➢ Fixed costs absorption from increased phosphate production volume ➢ Third-party contractor reduction over the next 18 months ➢ Global Digital Acceleration (GDA) value capture ➢ Procurement optimization $2
Slide 8: Supportive Ag Fundamentals
Supportive Ag Fundamentals Corn and soybean stocks-to-use ratio is increasing but those crops represent less than one-third of global phosphate and potash consumption. MMT Percent Corn + Soybean Stocks Phosphates Consumption 300 22% Stocks Percent of Use 250 20% 29% 200 18% 29% 150 16% 42% 100 14% 5
Slide 9: Farm Financial Health Remains Solid
Farm Financial Health Remains Solid There is meaningful upside potential to operator and land returns in 2024; Lower fertilizer costs have largely offset lower growers’ revenue. $ per acre Corn Operator and Land Returns Corn Expected Revenue:Fertilizer Cost Ratio in Central Illinois in Central Illin
Slide 10: Strong Palm Oil Fundamentals
Strong Palm Oil Fundamentals Potash affordability is expected to drive shipments growth in SE Asia, with Indonesia and Malaysia imports up sharply to start the year. The recovery of palm oil fundamentals is a key driving force of 2024 global potash demand growth. SE Asia MOP/CPO Price Ratio Mil Tonn
Slide 11: 2024 Phosphate Outlook
2024 Phosphate Outlook Low stocks and pent-up buying activities in Brazil and India might drive rising prices in Q3, resulting in a similar seasonal pricing trend as last year. Global DAP/MAP Benchmark Prices Brazil and India Stocks & Imports $/MT MMT Published Spot Prices 800 7.0 2024F Q2+Q3 Import
Slide 12: Segment Results and Outlook
Segment Results and Outlook ➢ 1Q results driven by strong North America spring planting demand. 2Q guidance reflects a seasonal and temporary price reset Phosphates ➢ Expect 2Q realized phosphate stripping margin to moderate from 1Q but remain elevated compared to historical normal level ➢ Expect co
Slide 13: 2024 Assumptions
2024 Assumptions Pricing & Sensitivities FY 2023 Sensitivity Average DAP fob plant ($/tonne)(1) $573 $10 price = $70 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $308 $10 price = $60 mm adjusted EBITDA BRL/USD(3) 5.00 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approximately 20% of DAP pric
Slide 14: Appendix
Appendix
Slide 15: Potash
Potash Y/Y Adjusted EBITDA(1) Bridge Q1 2024 Q1 2023 Variance $(193) Sales Volumes (mt in millions) 2.163 1.910 0.253 $93 $(378) MOP Selling Price (FOB Mine) ($/mt) $ 241 $ 421 $ (180) $474 MOP cash costs of production ($/mt) $ 72 $ 81 $ (9) $88 $281 $ in millions $ in millions Gross Margin $ 212 $
Slide 16: Phosphate
Phosphate Q1 2024 Q1 2023 Variance Sales Volumes (mt in millions) 1.644 1.836 (0.192) DAP Selling Price (FOB Plant) ($/mt) $ 598 $ 660 $ (62) Production volume (mt in millions) 1.577 1.836 (0.259) FL Cash Rock Cost of production ($/mt) $ 57 $ 58 $ (1) Cash Conversion Cost of production ($/mt) $ 110
Slide 17: Mosaic Fertilizantes
Mosaic Fertilizantes Y/Y Adjusted EBITDA(1) Bridge $80M Q1 2024 Q1 2023 Variance Sales Volumes (mt in millions) 1.715 2.080 (0.365) $93 $(3) $(5) Average Finished Product Selling Price ($/mt) $ 517 $ 646 $ (129) $(5) $83 MAP Price (delivered price to third party) ($/mt) $ 581 $ 669 $ (88) Cash Rock
Slide 18: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (in millions) Q1 2024 Q1 2023 Consolidated net earnings attributable to Mosaic $45 $435 Less: Consolidated interest expense, net (48) (41) Plus: Consolidated depreciation, depletion and amortization 241 220 Plus: Accretion expense 27 23 Plus:
Slide 19: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q1 2024 Q1 2023 Operating earnings $198 $402 Plus: Depreciation, depletion and amortization 82 70 Plus: Accretion expense 2 2 Plus: Foreign exchange gain (loss) (31) 3 Plus: Notable items 30 (3) Adjusted EBITDA $281 $474 19
Slide 20: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) Q1 2024 Q1 2023 Operating earnings $40 $266 Plus: Depreciation, depletion and amortization 117 116 Plus: Accretion expense 20 16 Plus: Foreign exchange gain (loss) 2 (2) Plus: Other income (expense) 3 - Plus: Dividends received fro
Slide 21: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q1 2024 Q1 2023 Operating earnings (loss) $42 $(32) Plus: Depreciation, depletion and amortization 40 32 Plus: Accretion expense 5 5 Plus: Foreign exchange gain (loss) (45) 23 Plus: Other income (expense) (2) (1) Less: E